The Portland daily press., 1887-08-24
Operations of the Trusts.

The trust, which stands in much the same
relation to the corporation that the corpora
tion does to the private business man. is be-
coming very well known organization for the
transaction and monopolizing of certain lines
of business in this country. The most i'm
portant trust is undoubtedly that known as
the Standard Oil Company, with whose
workings both in the oil regions, in State
Legislatures, and even in the two branches
Of the National Congress, the public are to a
certain small extent familiar. Then there
are the Cotton Oil Trust the Rubber Trust
lately organized and now, what is expected
TO be the most powerful of all, the Distilers'
and Cattle Feeders Trust has been formed
The production Of alcohol, considered as
manufacturing industry, is of no interest to
the people OF Maine; and the market price of
the commodity afteriti is manufactured prob
ably interests fewer people in Maine than in
any other State Of its size I'D population. 1t
is as a novel business venture, as a method
OF associating powerful capitalists, that the
formation of this trust is au interesting sub
ject Of study. For some time the distillers
Of this country have been suffering from
state of overproduction. The large trade in
alcohol which the distillers of the United
States formerly carried on with Europe and
South America, as well as Australia, has
been entirely lost. A few years since the ex-
ports of alcohol amounted to from 100000 to
100000 barrels per annum. Five years ago
Spain took from 10000 to 10000 barrels, and
France $4,000 to $1,000 barrels each year.
while South America required 10000 to 10000
every twelve months. Owing to the CONNER
cial treaty between Spain and Germany this
immense trade has all been lost. France,
which also enjoys favorable treaty with
Germany, no longer buys of America. In
South America corn is grown about as cheap
ly as in the United States, and many distil-
lery plants have been exported to that coun-
try. American distillers now have to depend
upon the domestic markets, for their total ex-
ports Of alcohol do not exceed $1,000 barrels
year. The competition of large number
OF distillers has been making alcoholic liq-
uors cheaper and lessening the profits; this
result has suggested the formation of the
trust This trust will be operated as the
other trusts are operated. In the first place.
the distiller who wishes to ioin the trust
and nearly all Of them are joining. puts a
valuation upon his distllery Then a COM
mittee is appointed to appraise it, After it
is appraised the owner turns 1t over to nire
trustees for their use for twenty-five years.
and receives in lieu thereof trust certificates.
In some instances he receives So in certi6-
Gates for 81 of valuation. After man turns
his property over to the trustees he ceases 10
operate it, They may operate it and they
may not. The plan is to so regulate the
amount of spirits in the market that their
sales shall be profitable enough to allow div
idends of from six to ten per cent on the
trust certificates. They will run enough dis
tilleries to produce the required amount of
product, and shut down the rest, of course
The capital of the trust is to be about forty
million dollars, which means that the dis
tlilers of spirits mean hereafter to wiring
from S2,4oO,oOO to 100000 of profits out
OF the consumers of spirits each year by less
enlng competition and enhancing the cost.
After the example of the Standard Oil COM